The Euro Manganese (ASX:EMN) share price is in focus today. Here's why

News of the company's Chvaletice Project was released this morning, putting the Euro Manganese share price on watch.

| More on:
Commodities premium ASX shares Female miner and male miner stand in open mine pit surveying the area

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Euro Manganese Inc CDI (ASX: EMN) share price is on watch this morning after news of the company's Chvaletice Project was released. Shares in Euro Manganese closed the last session trading for 47 cents.

The manganese producer has updated the market on its Chvaletice Project, which aims to produce high-quality and environmentally friendly ultra-high-purity manganese for European electric vehicle and lithium-ion battery industries.

The project is located 90 kilometres east of Prague and is expected to be completed in in late 2024 or early 2025.

Euro Manganese's wholly owned subsidiary, Mangan Chvaletice s.r.o, owns 100% of the Chvaletice Project.

Let's take a look at the news that could impact the Euro Manganese share price today.

Chvaletice Project update

According to Euro Manganese, the Chvaletice Project's definitive feasibility study will be completed by the first quarter of 2022.

The study will mean the company will be able to make a final investment decision and secure financing for the project.

However, Euro Manganese warned the project is facing risks from COVID-19 that could impact the company's ability to meet its upcoming targets.

The news follows the close of the second tranche of an oversubscribed $30 million placement, completed by Euro Manganese earlier this month.

Euro Manganese also announced it's still in discussions with customers for the project's high purity manganese products.

It states interest in the project's products is increasing as it's the only large manganese resource in the European Union.

Euro Manganese is still working to complete the Chvaletice Project's last Environmental and Social Impact Assessment. The assessment is also due to be finished in the first quarter of 2022.

The company has engaged with the Czech community and has support from the Czech Government. As a result, it believes none of the project's stakeholders house any critical concerns.

According to Euro Manganese, previous activities at the Chvaletice Project have contaminated the local ground water. The company says it plans to remove the pollutants and restore the site to "a more natural state". It hopes the Chvaletice Project will use only recycled, contaminated, and wastewater in its production process. Tests to find if the contaminated ground water could be a water source for the plant are planned.

Finally, the company has bought 97% of the equipment needed to build the Chvaletice Project's demonstration plant. It states the detailed designs for the plant are progressing well.

Commentary from management

Euro Manganese's CEO Marco Romero commented on the company's vision for the Chvaletice Project, saying:

For many prospective customers, the Chvaletice Manganese Project ticks all the boxes.

As a recycling project, we have the potential to be one of the world's greenest sources of high purity manganese, which will help auto makers and battery manufacturers meet the EU's increasingly stringent environmental standards. We expect to help the EU meet its decarbonisation goals, while cleaning up a longstanding source of water pollution and creating long-term local employment. There's no other [high purity manganese] production opportunity like this in the world.

Euro Manganese share price snapshot

In general, the Euro Manganese share price has been performing well on the ASX. Though, after a good start to 2021, it's been struggling in the past few months.  

Currently, the Euro Manganese share price is up 8.14% year to date. But the price has fallen 47.16% since its 2021 high of 88 cents in mid-January.

Shares in Euro Manganese have also gained 481.25% since this time last year.

The company has a market capitalisation of around $117 million, with approximately 371 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Resources Shares

Man in yellow hard hat looks through binoculars as man in white hard hat stands behind him and points.
Opinions

Are Fortescue shares a contrarian buy after falling 20% in a month?

Are investors putting too much weight on the jitters of the market or is the Fortescue fall fair?

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

Is the FY25 outlook for Fortescue shares compelling?

Can the iron ore miner deliver a strong result in FY25?

Read more »

Miner looking at a tablet.
Resources Shares

5 reasons everyone's talking about Fortescue shares this week

The miner's name has been buzzing this week.

Read more »

A mountain bike rider navigates down a bumpy track, indicating uncertain economic times ahead
Resources Shares

Uh-oh! Are ASX copper shares about to hit a speed bump?

ASX copper stocks could be about to hit a rough patch. But why?

Read more »

two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.
Resources Shares

What's the outlook for ASX 200 mining shares in FY25?

Let’s dig into some of the factors for miners in the 2025 financial year.

Read more »

Happy man in high vis vest and hard hat holds his arms up with fists clenched celebrating the rising Fortescue share price
Resources Shares

2 ASX mining shares rocketing over 16% on big news

Investors are getting very excited about these shares today.

Read more »

A smiling miner wearing a high vis vest and yellow hardhat and working for Superior Resources does the thumbs up in front of an open pit copper mine, indicating positive news for the company's share price today following a significant copper discovery
Resources Shares

Why are these experts so bullish on ASX copper shares?

ASX copper shares could lead the charge higher into 2025. But why?

Read more »

Female miner standing next to a haul truck in a large mining operation.
Resources Shares

What's happening with the big 3 ASX 200 iron ore stocks today?

BHP, Rio Tinto and Fortescue are eyeing an ongoing economic slowdown in China.

Read more »